The Vendors Letter to Axpona

I have to wonder if Axpona isn't profitable, then why do it and why take on more than one show. Axpona is said to be one of the largest shows, so how did the other shows provide refunds where Axpona is not able?

I hope as well it all works out but from what I see so far I have my doubts. Sometimes brands have to decide which shows to attend, I don't think it will hurt them to pass on Axpona. On the other hand I'm sure there's other things to factor in, how much of a boost is doing the show for the brand, etc. Not all of the venders at the show are big names though, some are just getting started and many are just retailers showing the brands, they really can't afford the loss, getting it from both ends.

The show business is NOT a highly profitable business.

For me, it’s about the passion to have a great local show because we have a good story to tell down here.

That being said, the risk is too high in times like these for any show exhibitor.


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It will be very interesting to see what happens with RMAF now.


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I have to wonder if Axpona isn't profitable, then why do it and why take on more than one show. Axpona is said to be one of the largest shows, so how did the other shows provide refunds where Axpona is not able?

'Cos the hotel didn't give them the money back and MOC did (they have rolled over the payment to 2021). That makes all the difference. I can guarantee that if MOC decided to keep the money, High End Society (the company behing Munich High End) wouldn't be able to refund the exhibitors either.

From a business point perspective, imagine your comapany having to refund all your customers in full, from the past 12 months. There are very few companies that would survive that. Airlines are asking for bailouts only after 2 months, and they are still operating, although at very low scale (shipping cargo). Now imagine a year without a revenue (as having to refund all of their exhibitors for a show that takes place once in a year means exactly that - 12 month worth or revenue, where the monies have been already spent on the project).

I feel really sorry for Axpona.
 
Adam and I are two of only a handful of people that have the proper perspective on things. We know how difficult it is to work with the hotels. Let me give you an example:

- this year at my show, the Florida Audio Expo, Peter from Magico arrived a day early and wanted to set up. I called the hotel and spoke with my POC to see if we could get the room. She said, “the contract says you do not get the room until tomorrow.” I said, “yes, yes, yes, I understand that, but the room is just sitting there empty!” She said, “your contract says you get the room tomorrow.”

This is just one of 100’s of examples. They are by the book, strictly by the contract.

In all likelihood, the Axpona Exhibitor contract closely mirrors the contract JDE has with the hotel. As the organizer, they are caught in the middle.

Given that JD Events manages many other trade shows (they are all listed on their website), they are in the same or similar predicament with several other of their shows.

I totally understand the unfortunate circumstances for the exhibitors. Some, like VAC, take large expensive rooms at Axpona and are out thousands and thousands more than the standard room. Others, smaller vendors, make this one big expenditure per year. To lose that with no upside really hurts.

But let me tell you all a story.....when I was growing up in Canada, there were hockey rinks on every corner. I started playing hockey at the age of 4 and at the age of 51 today, I still play three times a week. Finding a rink to play at in Canada was no problem at all. Now that I live in Florida, there is a hockey arena 20 minutes away from my house. But the next closest rink is over an hour away. So, frankly, we don’t have a lot of choices. When all of this Coronavirus stuff went down, we had just recently paid our $500 for the season. The rink shut. The ice was taken out to conserve costs. All games cancelled. My teammates started screaming for their money back. But my perspective was different: nobody could have seen this coming. Nobody could have predicted this. I was happy for the rink to keep my money (remember, I play in 3 leagues!) if it helps them stay afloat and reopen again one day so I can keep playing hockey. My perspective was: the bigger picture.

This is a bad situation all around and frankly, if I was in JDE’s situation, I may not have a lot of options except the most drastic corporate measure of all. Adam will tell you, this is a tough business and putting on a show is a lot more work than anyone could imagine.
 
I agree on all fronts, your committing up front on both sides and not buying a Lloyd’s policy.

Our industry show canceled and I spend close to $30K all in, it is supposed to be rescheduled for September, but I doubt it - in the end, it is what it is.


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Thanks for the insight, Mike. People are forgetting commercial landlords aren’t even getting rent right now. Got to chalk it up and move on.
 
Thanks for the insight, Mike. People are forgetting commercial landlords aren’t even getting rent right now. Got to chalk it up and move on.
 
It will be very interesting to see what happens with RMAF now.

I would guesstimte they have already paid the hotel ~50% deposit at this point. This is what I have paid and I have problems with rolling that over to 2021. We are talking about a six figure numbers. I haven't taken a single dollar in deposits so far, so worst case scenario - I'm looking at a 6 figure loss. I may need to sell my entire system to partialy cover the losses.
 
I would guesstimte they have already paid the hotel ~50% deposit at this point. This is what I have paid and I have problems with rolling that over to 2021. We are talking about a six figure numbers. I haven't taken a single dollar in deposits so far, so worst case scenario - I'm looking at a 6 figure loss. I may need to sell my entire system to partialy cover the losses.

Adam, I hope your venue management comes to their senses and works with you. Fingers crossed!


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I would guesstimte they have already paid the hotel ~50% deposit at this point. This is what I have paid and I have problems with rolling that over to 2021. We are talking about a six figure numbers. I haven't taken a single dollar in deposits so far, so worst case scenario - I'm looking at a 6 figure loss. I may need to sell my entire system to partialy cover the losses.

Adam, I hope your venue management comes to their senses and works with you. Fingers crossed!


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I would guesstimte they have already paid the hotel ~50% deposit at this point. This is what I have paid and I have problems with rolling that over to 2021. We are talking about a six figure numbers. I haven't taken a single dollar in deposits so far, so worst case scenario - I'm looking at a 6 figure loss. I may need to sell my entire system to partialy cover the losses.

Stay strong, there are answers somewhere.


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I saw Stereophile did an update on the Axpona story today. It appears JDE sent a letter out today saying the receivers of the letter get 100% of their money credited as follows, 50% of the 2020 deposit credited to 2021 and 25% each of the two following years.

That would seem to be a reasonable compromise in light of circumstances. IMO
 
I saw Stereophile did an update on the Axpona story today. It appears JDE sent a letter out today saying the receivers of the letter get 100% of their money credited as follows, 50% of the 2020 deposit credited to 2021 and 25% each of the two following years.

That would seem to be a reasonable compromise in light of circumstances. IMO
 
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